Brian Ernewein indicates that there are major issues to be addressed in deciding the process for the country-by-country choice of options in the proposed multilateral instrument

Brian Ernewein noted that there will be numerous options to choose from in the proposed BEPS multilateral instrument. In order for the MLI not to degenerate into the effective equivalent of a multitude of bilateral negotiations, it may be contemplated that countries may, for example

choose their type of platform - minimum standards plus whatever things they want to do - and that is what they have to offer to everyone.

Another issue arises where the standards to be addressed in the MLI may already be addressed in existing treaties – would any change be required in that regard to those treaties? Also, a country may not want the MLI to affect its treaties with some countries, and may wish to opt out respecting those countries. Yet another complexity relates to the fact that under one of the minimum standards there is a choice between using a principal purpose test or LOB standard - whose standard prevails, or could each country agree to provide its own standard to its own treaty benefits?

Brian indicated that these and other complexities indicate that the MLI is a very ambitious undertaking.

Neal Armstrong. Brian Ernewein on BEPS under Multilateral Instrument process.